Test yourself

Quizzes on InvITs, highways and finance

Three short quizzes, from basics to professional. Each answer comes with an explanation and a link to learn more.

Updated 25 October 2026

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Quiz 1: InvIT basics

Eight questions for beginners. About three minutes.

1. What does an InvIT mainly own? Shares of listed infrastructure companies Income-producing infrastructure assets, usually through SPVs Government bonds Land banks for future projects

An InvIT is a trust that owns operating infrastructure, such as toll roads, through special purpose vehicles. What is an InvIT

2. Which regulator writes the rules for InvITs in India? RBI IRDAI SEBI NHAI

SEBI notified the InvIT Regulations in September 2014. SEBI rules explained

3. At least how much of net distributable cash flow (NDCF) must be distributed? 50% 75% 90% 100%

At least 90% of NDCF must be distributed, at both SPV and InvIT level. NDCF explained

4. How often must a public InvIT declare distributions, at minimum? Every month At least once every six months Once in three years Only when it sells an asset

Public InvITs must declare at least once every six months. Many pay quarterly by choice. SEBI rules explained

5. In the hands of a unitholder, interest distributed by an InvIT is generally: Fully exempt Taxable, like interest from a bank Taxed only on sale of units Taxed at the trust level only

Distributions keep their character. Interest is taxable for the unitholder, with TDS. InvIT taxation

6. What happens to the cost of your units when you receive a 'repayment of debt' distribution? Nothing It goes up It is reduced The units are cancelled

Repayment of debt mainly lowers your cost base, which raises the capital gain when you sell. InvIT taxation

7. Who takes investment decisions and declares distributions for an InvIT? The trustee The investment manager The stock exchange The valuer

The investment manager. The trustee holds the assets for unitholders and oversees the manager, and the project manager runs the roads day to day. What is an InvIT

8. Which was the first InvIT to raise money from the public in India? IRB InvIT Fund A REIT A mutual fund None has listed yet

IRB InvIT Fund’s IPO closed on 5 May 2017. Highways since 1947

Quiz 2: Highways, tolls and concessions

Eight questions on BOT, TOT, HAM, FASTag and the highway network.

1. Under the Hybrid Annuity Model (HAM), the authority pays what share of the bid project cost during construction? 10% 40% 60% 100%

40% during construction (now in ten 4% instalments). The other 60% is repaid as annuities with interest. BOT, TOT and HAM

2. Who carries traffic risk in a BOT (Toll) project? The authority The concessionaire The road users The lenders only

In BOT (Toll), the concessionaire collects the toll and bears the traffic risk. BOT, TOT and HAM

3. In a TOT (Toll-Operate-Transfer) deal, the investor: Builds a new road Pays an upfront amount for the right to toll an operating road Gets fixed annuities Buys the land

TOT leases an operating road for an upfront payment. The first bundle went for ₹9,681 crore in 2018. Highways since 1947

4. From when did FASTag become mandatory on national highways? 1 April 2019 Midnight of 15 February 2021 15 August 2025 1 January 2024

From midnight of 15 February 2021, with a double fee for vehicles without a valid tag. Toll fee rules

5. Which rules set how national highway toll rates are fixed and revised? The Motor Vehicles Act, 1988 The National Highways Fee (Determination of Rates and Collection) Rules, 2008 The Companies Act, 2013 The SEBI InvIT Regulations

The 2008 Fee Rules set base rates and the annual revision. Toll fee rules

6. What was the record year for national highway construction? 2014-15 2018-19 2020-21 2024-25

13,327 km were built in 2020-21, about 37 km a day. Highways since 1947

7. Roughly how long is India’s national highway network today? About 19,800 km About 70,900 km About 1.46 lakh km About 6 lakh km

About 1,46,560 km in December 2025. The highway sector

8. Under the NHAI circular of 19 January 2026, which route applies to claims below ₹10 crore? Only the High Court Arbitration through SAROD or IIAC No dispute resolution Direct appeal to the Supreme Court

Below ₹10 crore: arbitration through SAROD or IIAC. ₹10 crore and above: conciliation or the courts. Disputes and arbitration

Quiz 3: Finance and accounting professional

Eight questions on debt, valuation, Ind AS and P2P/R2R for CAs, CMAs and analysts.

1. What does DSCR measure? Debt to equity Cash available for debt service divided by scheduled debt service Toll rate growth Distribution yield

DSCR = cash available for debt service ÷ principal plus interest due. Lenders set minimums and cash traps on it. Debt, DSCR and covenants

2. Above 49% and up to 70% borrowing, which condition is NOT required for an InvIT? AAA rating Six continuous distributions Approval of 75% of unitholders by value A guarantee from NHAI

There is no NHAI guarantee condition. The other three are required. SEBI rules explained

3. Toll road concessions are usually accounted for in India under: Ind AS 116, Leases Ind AS 115, using its service concession appendix Ind AS 40, Investment property Ind AS 2, Inventories

Service concession arrangements follow the service concession appendix to Ind AS 115 (the Indian equivalent of IFRIC 12): an intangible asset for toll rights, a financial asset for annuities. InvIT accounting

4. Under section 15 of the MSMED Act, the longest payment period a buyer can agree with a micro or small supplier is: 15 days 30 days 45 days 90 days

45 days (15 days if nothing is agreed). Later payment carries compound interest at three times the RBI bank rate. P2P and R2R

5. A three-way match compares: Budget, actual and forecast Purchase order, goods receipt and supplier invoice Bank, ledger and cash book TDS, GST and invoice

PO, GRN and invoice must agree on quantity and price before payment. Three-way match template

6. Expected credit loss (ECL) on trade receivables follows: Ind AS 109 Ind AS 16 Ind AS 37 Ind AS 19

Ind AS 109 allows a simplified, lifetime-ECL approach for trade receivables. ECL template

7. In a typical toll SPV cash waterfall, which comes first? Distributions to the InvIT Operating and maintenance expenses and taxes Major maintenance reserve Subordinated debt

O&M and taxes come first, then senior debt service, then reserves, and distributions come last. Debt, DSCR and covenants

8. Under RBI’s project finance directions effective 1 October 2025, the general provision during construction is: 0.4% 1% 2.5% 5%

1% during construction for most projects (1.25% for commercial real estate), and 0.4% to 1% once operational. Project finance and lenders